Switch to:
GuruFocus has detected 5 Warning Signs with Accenture PLC $ACN.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Accenture PLC (NYSE:ACN)
Piotroski F-Score
6 (As of Today)

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Accenture PLC has an F-score of 6 indicating the company's financial situation is typical for a stable company.

ACN' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Max: 9
Current: 6

4
9

During the past 13 years, the highest Piotroski F-Score of Accenture PLC was 9. The lowest was 4. And the median was 7.


Definition

How is the Piotroski F-Score calculated?

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (May17) TTM:Last Year (May16) TTM:
Net Income was 1069.226 + 1004.476 + 838.752 + 669.468 = $3,582 Mil.
Cash Flow from Operations was 1973.674 + 1083.882 + 154.703 + 1792.572 = $5,005 Mil.
Revenue was 8965.58 + 9005.603 + 8762.182 + 9356.787 = $36,090 Mil.
Gross Profit was 2655.54 + 2730.032 + 2504.156 + 2909.631 = $10,799 Mil.
Average Total Assets from the begining of this year (May16)
to the end of this year (May17) was
(19191.047 + 20609.004 + 20443.741 + 20078.773 + 21135.592) / 5 = $20291.6314 Mil.
Total Assets at the begining of this year (May16) was $19,191 Mil.
Long-Term Debt was $25 Mil.
Total Current Assets was $11,206 Mil.
Total Current Liabilities was $9,154 Mil.
Net Income was 737.628 + 818.899 + 1326.52 + 897.247 = $3,780 Mil.

Revenue was 8364.511 + 8465.984 + 8397.053 + 8969.044 = $34,197 Mil.
Gross Profit was 2504.405 + 2562.519 + 2369.816 + 2689.552 = $10,126 Mil.
Average Total Assets from the begining of last year (May15)
to the end of last year (May16) was
(17308.727 + 18202.647 + 17993.875 + 18147.778 + 19191.047) / 5 = $18168.8148 Mil.
Total Assets at the begining of last year (May15) was $17,309 Mil.
Long-Term Debt was $27 Mil.
Total Current Assets was $11,576 Mil.
Total Current Liabilities was $8,161 Mil.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Accenture PLC's current net income (TTM) was 3,582. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by total assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Accenture PLC's current cash flow from operations (TTM) was 5,005. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year’s return on assets (1) to last year’s return on assets.

Score 1 if it’s higher, 0 if it’s lower.

ROA (This Year)=Net Income (TTM)/Total Assets at the Beginning of This Year (May16)
=3581.922/19191.047
=0.18664547

ROA (Last Year)=Net Income (TTM)/Total Assets at the Beginning of Last Year (May15)
=3780.294/17308.727
=0.21840393

Accenture PLC's return on assets of this year was 0.18664547. Accenture PLC's return on assets of last year was 0.21840393. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Accenture PLC's current net income (TTM) was 3,582. Accenture PLC's current cash flow from operations (TTM) was 5,005. ==> 5,005 > 3,582 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year’s gearing (long-term debt divided by average total assets) to last year’s gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: May17)=Long-Term Debt/Average Total Assets from May16 to May17
=24.732/20291.6314
=0.00121883

Gearing (Last Year: May16)=Long-Term Debt/Average Total Assets from May15 to May16
=26.801/18168.8148
=0.00147511

Accenture PLC's gearing of this year was 0.00121883. Accenture PLC's gearing of last year was 0.00147511. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year’s current ratio (current assets divided by current liabilities) to last year’s current ratio.

Score 1 if this year'’s current ratio is higher, 0 if it’s lower

Current Ratio (This Year: May17)=Total Current Assets/Total Current Liabilities
=11205.735/9154.325
=1.22409189

Current Ratio (Last Year: May16)=Total Current Assets/Total Current Liabilities
=11576.011/8161.133
=1.41843185

Accenture PLC's current ratio of this year was 1.22409189. Accenture PLC's current ratio of last year was 1.41843185. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Accenture PLC's number of shares in issue this year was 658.8. Accenture PLC's number of shares in issue last year was 666.4. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year’s gross margin (gross profit divided by sales) to last year’s.

Score 1 if this year’s gross margin is higher, 0 if it’s lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=10799.359/36090.152
=0.29923285

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=10126.292/34196.592
=0.29611992

Accenture PLC's gross margin of this year was 0.29923285. Accenture PLC's gross margin of last year was 0.29611992. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year’s asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year’s asset turnover ratio.

Score 1 if this year’s asset turnover ratio is higher, 0 if it’s lower

Asset Turnover (This Year)=Revenue (TTM)/Total Assets at the Beginning of This Year (May16)
=36090.152/19191.047
=1.88057233

Asset Turnover (Last Year)=Revenue (TTM)/Total Assets at the Beginning of Last Year (May15)
=34196.592/17308.727
=1.97568498

Accenture PLC's asset turnover of this year was 1.88057233. Accenture PLC's asset turnover of last year was 1.97568498. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+0+1+1+0
=6

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Accenture PLC has an F-score of 6 indicating the company's financial situation is typical for a stable company.


Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Related Terms

Net Income, Cash Flow from Operations, Revenue, Gross Profit, Total Assets, Long-Term Debt, Total Current Assets, Total Current Liabilities


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Accenture PLC Annual Data

Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15Aug16
Question 1 1111111111
Question 2 1111111111
Question 3 1101101001
Question 4 1111111111
Question 5 1110100011
Question 6 0110010101
Question 7 1111111111
Question 8 1111001000
Question 9 1101100101
F-score 8977756658

Accenture PLC Quarterly Data

Feb15May15Aug15Nov15Feb16May16Aug16Nov16Feb17May17
Question 1 1111111111
Question 2 1111111111
Question 3 1100111100
Question 4 1111111111
Question 5 1111111111
Question 6 1000011000
Question 7 1111111111
Question 8 0000000001
Question 9 1100011100
F-score 8755688756
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK